Under the pilot scheme, the Clearing Bank and Participating Banks of RMB Business in Hong Kong and Macao, overseas banks involved in yuan cross-border trade settlement, and central banks and monetary authorities outside the mainland can make use of their RMB funds to conduct trading in the mainland's interbank bond market upon approval by the PBOC.

The central bank said the move aimed to boost China's program to encourage the use of the yuan in settling trade, thus broadening the international role of the currency.

Analysts believe the launch of the scheme will increase investment channels for overseas RMB funds, and further promote the development of RMB settlement outside the mainland.